Standard Chartered Bank, one of the leading foreign banks with operations in India, is planning to buy out the Indian business of Bank of Bahrain and Kuwait as part of its expansion strategy, said an official Tuesday.

The London-based bank has signed a "non-binding agreement" with Bank of Bahrain and Kuwait, Bahrain's largest bank, to acquire the latter's branches in Hyderabad and Mumbai, said a Standard Chartered Bank official.

The takeover is subject to approval by the Reserve Bank of India, the country's central bank, added the official.        

According to Bank of Bahrain and Kuwait's website, the Hyderabad and Mumbai branches of the bank in India have a quality asset base that has been developed through efficient asset-liability management.

The branches offer treasury and investment services and are in the process of developing attractive deposit schemes. Facilities for online trading in capital markets and exchange drafts by telephone have been introduced.

With the enhanced flow of business from non-resident Indians (NRIs) in Gulf countries, the braches in Hyderabad and Mumbai offer substantial opportunities for quality growth, the bank said.

Standard Chartered offers a wide range of premium banking products and services through its network of 78 branches in 30 cities across India.